Here is a link Hussman 04-25-16 to John Hussman’s April 25, 2016 weekly commentary. Dr. Hussman has had his investment challenges with the Federal Reserve’s hyper intervention the last several years but you can always count on him for no b.s. facts about the markets and the economy.
Note, in full disclosure, Mr. Hussman can be quite technical in his writing. In this weekly commentary he describes the every day dance between stock market buyer’s and sellers driven by their value and trend following approaches. He describes why markets move up and down in normal trading and with velocity at times. He calls this daily market dance Lessons From The Iron Law of Equilibrium.
He also describes a typical market topping. Something that I have written about in the last year. Dr. Hussman notes; It’s largely forgotten that during the 2000 top formation, the S&P 500 lost 12% from July-October 1999, recovered to fresh highs, retreated by nearly 10% from December 1999 to February 2000, recovered to fresh highs, experienced another 10% correction into May, recovered to a new high in total return (though not in price) on September 1, 2000, retreated 17% by December, and by January 2001 had recovered within 10% from its all-time high, and was unchanged from its level of June 1999.
Likewise, during the 2007 top formation, the S&P 500 corrected nearly 10% from July to August, recovered to a fresh high in October, corrected over 10% into November, recovered nearly all of it by December, followed with a 16% loss, and by May 2008 had recovered within 9% of its all-time high, and was unchanged from its level of October 2006.
I hope you enjoy John Hussman’s musings.
